Unless you have been living in another planet, you probably have heard news of people queuing up at banks to complain about their mis-sold Payment Protection Insurance. The fiasco has gone on for years now and banks and other lenders have already been required by the high court to look into the cases where the policy was wrongly sold to consumers.
Yes, PPI has every good intention of protecting customers from being broke and the bank from repayment losses. However, the policy that was designed to cover the repayment percentage of the debt owed by an individual if they are unable to due to sickness, accident, or unemployment has been systematically mis-sold to millions. Some were tricked and sweet-talked into buying it without being told the necessary details they needed to know while others were simply unaware that it has been applied alongside their credit agreement.
In case you’re wondering if you ever had paid for something like it, you can go over your account paperwork to find out. Sometimes, the policy is not directly referred to as Payment Protection Insurance. It could be Loan Repayment Protection, Mortgage Payment Insurance, Cardholder Repayment Protection, among others. Check your statements for any reference of it.
If you find out that so much of your money has been paid to it, where it could easily have just been allotted for something more important, you’ve got every right to claim it back, including the interest, of course. Just try to have a good recall of how you believe it was wrongly sold to you. There are plenty of ways how a seller could trick you into signing up for Payment Protection Insurance. Here are some of them:
Some PPI policies are automatically applied to a a credit agreement. An online application form would have a tick box mark by default to sign you up and you could have just not noticed it.
Some sellers would put you up for it on your behalf without your knowledge.
Some of them are deliberately missing out on information that you needed to know during the sale process. Details like the insurance cost, cooling-off period, expiration of the policy, etc, are just few among a lot of information that you should be told.
Some PPI sellers do not determine your eligibility and need of the product, and the suitability of the policy to your current status. Age limit, residence and employment status, and pre-existing medical conditions are vital eligibility and suitability requirements that should have been discussed.
If any of these were what happened at the time that PPI was sold to you, then you can file for a PPI claim and get your money back. Just write to your PPI seller, which is possibly your bank, too and tell them that you wish to have it thoroughly looked into. Include your reasons you were wrongly signed up for the policy and they will look into the case for you.
Allow them 6 or 8 weeks to weigh the validity of your PPI claim. As necessary, you need to back up your claim with the documents you have related to your account and the insurance. If you have none of it anymore, you may request for a copy of it from your bank or get the credit bureau to dig your file in case you forgot who your lender was.
As much as there is no set deadline to make PPI claims, you have every advantage to a successful claim if the policy was no older than six years since your account began or the debt was paid in full. Six years is the maximum mandated time that banks and the credit bureau offices have to keep your records on file. However, it is not conclusive that if your account and the PPI were applied in 2000 you won’t be able to make a claim any longer. It may just take longer than the ideal time frame to prove it.
If after 8 weeks at the latest you haven’t heard from your bank, or your PPI claim was rejected and you were unhappy about it, the Financial Ombudsman Service is willing to help you resolve the dispute. File a complaint against your lender at the Ombudsman and they will make further investigation for you. Once they make a decision and your claim was favoured on, you will be contacted by the FOS and your lender will be required to return the money you were owed.